Starting a trampoline park can be a rewarding and exciting venture, but it requires careful planning and preparation. The first step is to conduct thorough research to gain an understanding of the market, competition, and customer demand.
Once you have a clear idea of what you want to achieve, create a comprehensive business plan that outlines your goals, marketing strategies, financial projections, and operational procedures.
This plan will help you secure funding from investors or lenders who are interested in supporting your project. Choosing a suitable location is also crucial, as your trampoline park should be easily accessible, visible, and large enough to accommodate your equipment and customers.
Trampoline parks are no exception to the growth of indoor parks. Nevertheless, not all businesses in this sector will survive. So, to give yours a better chance of success. Finally, ensure compliance with safety regulations by implementing safety protocols, training your staff, and conducting regular inspections of your equipment. By following these steps, you can set yourself up for success in the trampoline park industry
Our guide for setting up a trampoline park that is competitive can be found here.
Identifying your target market, creating a business plan, and launching the business will all be covered. Let’s get started right away.
Conduct proper market research
Every business should make decisions based on the customer experience. Identifying your target market is crucial when starting a trampoline park.
There is a need for some market research here. Discover who your target customer is, what they do, and what their pains are.
You’ll soon discover that trampolining appeals to everyone. A child, a teenager, and an adult. It is possible to meet the needs of each of these groups of customers through customer segmentation.
To avoid a negative ROI or even losing your entire investment, you should also consider the financial aspect of running this business early. Your revenue and profit potential should be estimated based on a rough estimate.
Estimate your target revenue
Consider the revenue of your upcoming venture as you conduct your market research. To obtain finer details such as additional revenue sources such as food, drinks, and merchandise, conduct a thorough trampoline park market analysis.
Having these details will help you determine whether your business will prosper or struggle in the long run.
Estimate profits
Are you aware of how much cash your competitors currently make? Keeping your business in business means making a good profit, so you should determine if the margins are worth it. Due to the high investment required to open a trampoline park, this is particularly important.
Prior to seeing a return on your investment, you will have to wait a while. This may take approximately 8 to 12 months, according to the International Association of Trampoline Parks (IATP).
Look into the industry
It is now possible to estimate the revenue and profit generated by your trampoline park based on who the target market will be. Researching your competitors is the next step.
Assessment of current players includes assessing their business models, charges, and products.
Using differentiation and a suitable price point, you should define your market positioning at this stage.
Differentiate from competitors
You can differentiate yourself from your competitors by knowing your competitors.
Identify your target customers’ needs and outline your value proposition. Create your USP by understanding your customers’ pain points.
Getting it perfect right away isn’t the point of this brainstorming exercise. Don’t be afraid to get creative and come up with ideas that will make people choose you over your competitors.
Differentiation is the key to attracting customers and beating your competition.
Decide what to charge customers
It’s difficult to figure out pricing.
To be perceived as cheap, you need to strike that sweet spot between too expensive and too expensive.
Therefore, you should consider factors such as the park’s geographic location as well as the typical fees charged by the industry. After you have identified the USP, try to add the premium needed.
To maximise profit, you will need to experiment with pricing.
Work out startup and ongoing costs
There is a high startup cost for a custom trampoline park. Trampoline equipment and supplies are mostly purchased and the court is set up with the initial sum.
According to IATP, you will need between €1 to 1.6 million in capital to open an indoor trampoline park of 2322.6 m2 and 3251.6 m2. The activities you will offer your customers may vary based on your geographic location.
Other costs will be incurred as you start your business. In addition to rent, utilities, maintenance, insurance, marketing, and labour costs, these ongoing costs include things like rent, utilities, maintenance, and insurance.
We’ll discuss startup costs a little further below.
Estimate equipment and supplies costs
Quality equipment is essential for trampoline parks. A court accident is more likely to occur if you fail to follow these guidelines.
You may need the following equipment and supplies:
- Trampoline flooring
- Foam pit
- Basketball hoops
- Basketballs and dodgeballs
- Climbing walls
- Trampoline socks
Make sure you shop around for the best deal before purchasing any equipment.
Estimate insurance costs
In the UK, insurance for trampoline parks is an essential business expense that cannot be overlooked. This type of insurance covers a range of potential liabilities, such as personal injury claims, property damage, and business interruption. It’s important to work with a reputable insurance provider who can tailor your policy to your specific needs, based on factors such as the size of your facility, the number of employees you have, and the type of activities you offer.
Having insurance coverage not only protects your business from financial loss, but also provides peace of mind to your customers and helps to build trust in your brand. When selecting an insurance provider, it’s important to research and compare different options to find the best policy for your trampoline park.
Develop a strong business plan
Your business targets are more likely to be achieved if you plan ahead. Therefore, before you set up a trampoline park, you should develop a business plan.
What should your plan include?
Identify two things you want to accomplish: 1) what are your business goals and 2) how you intend to achieve them.
For a quick start, here are a few important sections:
- Executive summary
- Company description
- Products and services
- Market analysis
- Strategy and implementation
- Operations and management plan
- Financial plan and projections
You will be able to make informed decisions along the way when you have a business plan in place that keeps you focused on where your business is headed.
Promote and market your new company
The launch of your trampoline park is now just a few steps away. However, we offer advice on how to market and promote your business before then.
Prior to investing tons of money into the business, you can validate your assumptions.
Talking to others is, of course, the best way to do this.
Network and define your marketing channels
Getting your business off to a successful start by networking with other entrepreneurs is a great idea.
Attending events and meet-ups is one way to do this. It is a great place to network and exchange ideas with other business owners.
Influencers in the leisure industry are another group to network with. Your potential customers can be better understood by interacting with influencers. A trampoline park can also benefit from partnering with marketers.
Defining your marketing channels should also be a part of this process. Promoting your trampoline park can be done in the following places:
- Your website
- Social media channels
- Review sites like TripAdvisor
Establish an online presence and prepare marketing collateral
A majority of people search online for leisure and fun activities when they want to find a place. You need to create an attractive and detailed website to hook them and turn them into customers.
It is also important to have a social media presence. Social media is used by the average person for about two hours a day, according to research. Consequently, this is an excellent opportunity to position yourself strategically where potential clients are already browsing for information.
In addition to Facebook, Instagram, Pinterest, and YouTube, there are many other platforms.
Using Reserve with Google is another great way to sell yourself directly on search results. Getting your trampoline park listed on Reserve with Google is very easy if you are a Regiondo user.
Preparing marketing collateral is just as important as creating your online footprint. Promote your trampoline park by handing out flyers and brochures.
Handle the legal aspects
Ensure you’ve met all legal requirements well in advance in order to minimise risk. A trampoline park venture requires careful planning before making big investments.
Get your business’ name registered
Registering a business name can be done at the local business registrar’s office. Trampoline parks do not necessarily have the same names. There’s no need to overthink it.
Register for taxes
Registering your business for taxes is a crucial step for any entrepreneur in order to remain compliant with local laws and regulations. In the UK, businesses can register for taxes online through HM Revenue & Customs (HMRC).
The types of taxes that businesses need to register for vary depending on the type of business structure they have. For example, a sole trader or partnership will need to register for income tax and national insurance contributions, while a limited company will need to register for corporation tax, as well as pay employer’s national insurance contributions and Value Added Tax (VAT) if applicable.
VAT is also required for businesses that exceed a certain turnover threshold. Other taxes that businesses may need to pay include business rates, which are levied on non-domestic properties, and capital gains tax, which is applicable when a business sells assets or property.
It’s important to seek advice from an accountant or tax specialist to ensure that you register for the appropriate taxes and remain compliant with all regulations.
Obtain necessary insurance, permits, and licenses
Make sure you obtain all required permits and licenses to avoid being fined or even shut down. If you would like more information about what is required in your region, you should contact your local city, town, or county clerk’s office.
Design your trampoline park
This is a very exciting step in the process. The design of your trampoline park. It is here that you can start directly working on the jumping zone of your dreams.
When setting up, keep these points in mind.
Identify an ideal location
Your business’ success depends on choosing the right location.
Proximity to customers is an important factor to consider. By placing your trampoline park near an area with already heavy traffic, you will be able to boost the number of people who visit your business.
A trampoline park can be in shopping malls and retail parks. The building should also meet the entertainment centre standards if it’s on its own.
It is, however, important to keep in mind the competition in the area when choosing a location. A trampoline park should not be built in an area with several others already operating.
It is also important to consider the cost. A building or mall located in a prime location is usually more expensive than one in a lower trafficked area.
The most important thing is to pick a location that can fit into your budget while offering you as much value as possible.
Find the right trampoline park manufacturers
Manufacturers of trampoline parks who are professional can ensure they have designed a park that is up to code. If you want to build a trampoline park of high quality, look for reputable suppliers.
Launch and grow your trampoline park business
The day you open your new trampoline park is probably very exciting for you after following all the steps. To increase your launch’s chances of success, you can do a few things.
The first thing you should do is inform as many people as you can. Your marketing channels established earlier can be used to advertise the launch. Consider making a day-long offer for your launch to attract even more people. You can offer group discounts, free snacks, or bundles to your employees.
Don’t stop after launch. Take your business to the next level. Make sure all your customers receive the best service and experience so they will return and tell their friends and family about you. Growth can be achieved in this way.
Also, continue to market and promote your trampoline park. Even when a launch is successful, sometimes there is a novelty effect that can boost initial demand before slowing down. To ensure a consistent stream of customers, you must continually develop and market your park.
Securing funding
Obtaining security funding for your trampoline park is an important step in ensuring the financial stability and growth of your business. There are several options available to entrepreneurs in the UK, including start-up loans, merchant cash advances, and asset finance.
- Start-up loans are a popular choice for new businesses and can provide funding of up to £25,000 with a fixed interest rate.
- Merchant cash advances allow businesses to receive an advance on their future debit and credit card sales, with repayments taken as a percentage of daily sales.
- Asset finance, on the other hand, allows businesses to borrow against their assets, such as equipment or property. This type of financing can be useful for trampoline parks that need to invest in high-cost equipment.
When considering security funding options, it’s important to carefully research and compare different providers to find the best fit for your business needs. Seeking advice from a financial expert can also help you make an informed decision about the most suitable type of financing for your trampoline park.
Frequently asked questions
What are the most important considerations when choosing a location for a trampoline park?
When choosing a location for a trampoline park, there are several important considerations to keep in mind. First, the space must be large enough to accommodate the trampolines and other equipment needed for the park. It's also important to choose a location that is easily accessible and visible to potential customers. The location should also be in a safe and well-lit area, with ample parking and good transport links. Additionally, it's important to research local zoning laws and regulations to ensure that the location is suitable for a trampoline park.
What type of equipment is needed to start a trampoline park?
To start a trampoline park, a range of equipment is required, including trampolines, foam pits, dodgeball courts, and other interactive features such as ninja courses and climbing walls. The type and amount of equipment needed will depend on the size and focus of the trampoline park. It's important to invest in high-quality equipment that is safe and durable, and to ensure that the equipment is installed and maintained by trained professionals to prevent accidents and injuries.
What are the key steps involved in securing funding for a trampoline park?
Securing funding for a trampoline park can be a complex process, but there are several key steps to follow. First, create a comprehensive business plan that outlines your goals, marketing strategies, financial projections, and operational procedures. This will help you secure funding from investors or lenders who are interested in supporting your project. Consider different types of financing options, such as start-up loans, merchant cash advances, and asset finance, and research different providers to find the best fit for your business needs. It's also important to prepare a solid financial forecast that demonstrates the potential profitability of your trampoline park and your ability to repay any loans or investments.
Conclusion
In conclusion, starting a trampoline park can be a lucrative and exciting business opportunity, but it requires careful planning, preparation, and execution. It’s important to conduct thorough research, create a comprehensive business plan, secure adequate funding, choose a suitable location, and ensure compliance with safety regulations.
Investing in insurance and registering for the appropriate taxes are also crucial steps for protecting your business and remaining compliant with local laws. With the right resources and support, entrepreneurs can successfully start and grow a thriving trampoline park that offers a fun and safe environment for customers to enjoy.
That should be all the information you need to start up your very own trampoline park in 2024. Good luck with your future business endeavours.
Jarred Musson is a versatile writer with a diverse educational background and a passion for all things business. Holding a Master of Science (MSc) degree in Marketing and a Bachelor of Arts (BA Hons) in Multimedia Journalism from Manchester Metropolitan University, Jarred possesses a unique blend of expertise that allows him to dissect and communicate complex business topics with clarity and precision.